Wales Pension Partnership picks Russell Investments for private credit

The Wales Pension Partnership (WPP), the pooling entity for the eight Wales Local Government Pension Scheme (LGPS) funds, has selected Russell Investments to establish a private credit investment programme.

The appointment followed a competitive tender process run by consultancy bfinance and Carmarthenshire County Council, the host authority, it was announced.

The appointment expands WPP’s existing partnership with Russell Investments, which was first appointed as the Partnership’s investment management solutions provider in 2018.

For this private credit solution, Russell Investments will leverage its strategic partnership with private markets investment management firm Hamilton Lane, building and managing WPP’s private credit portfolio, with a focus on diversification across investment strategies, sectors and geographies over a series of vintages.

The portfolio management team, Russell Investments said, will use best-in-class closed-ended primary investment funds, secondaries and direct investments to enhance the Partnership’s strategic asset allocation.

Particular focus will be placed on sustainability considerations to meet WPP’s long-term ESG goals, it added.

Chris Moore, of Carmarthenshire County Council and an officer for WPP, said: “As investment markets become more complex, we realise that private markets will continue to play a vital role in helping our constituent authorities meet their long-term goals.”

He noted that the combined expertise of Russell Investments and Hamilton Lane “offers a compelling private credit solution that can both deliver on our sustainability goals and provide value for money”.

Jim Leggate, head of UK institutional, Middle East & Africa at Russell Investments, added: “Private markets are an increasingly critical part of the strategic asset allocation mix as investors look to access sophisticated strategies and markets to support their long-term return objectives.”

Russell investments now manage over £8bn (€9.3bn) of the Partnership’s pooled assets across equities, fixed income and private markets portfolios.

“Working in tandem with our strategic partner, Hamilton Lane, we will collaborate with the eight constituent authorities to develop a tailored and diversified private credit solution,” Leggfate said.